Answer :
To determine which statement explains why Greece, France, and Italy would benefit from specialization and trade, we need to calculate the additional worker hours needed to produce wine instead of olive oil for each country. Then, we will evaluate the given statements based on the information from this comparison.
Let's work through the steps:
1. Calculate Additional Worker Hours to Produce Wine Instead of Olive Oil:
- For Greece:
[tex]\[ \text{Additional worker hours} = \text{Worker hours to produce wine} - \text{Worker hours to produce olive oil} = 60 - 35 = 25 \text{ hours} \][/tex]
- For France:
[tex]\[ \text{Additional worker hours} = \text{Worker hours to produce wine} - \text{Worker hours to produce olive oil} = 45 - 40 = 5 \text{ hours} \][/tex]
- For Italy:
[tex]\[ \text{Additional worker hours} = \text{Worker hours to produce wine} - \text{Worker hours to produce olive oil} = 45 - 35 = 10 \text{ hours} \][/tex]
2. Summarize Additional Worker Hours:
[tex]\[ \begin{tabular}{|l|c|c|c|} \hline Country & Additional Worker Hours to Produce Wine Instead of Olive Oil \\ \hline Greece & 25 \\ \hline France & 5 \\ \hline Italy & 10 \\ \hline \end{tabular} \][/tex]
3. Evaluate the Statements:
- Statement 1: "Each country has an absolute advantage in one activity."
- An absolute advantage exists when a country can produce a good using fewer resources than another country.
- Greece has the lowest worker hours for producing olive oil (35 hours).
- France has the lowest worker hours for producing wine (45 hours).
- Italy does not have the lowest worker hours for either product.
- This statement is False under the criteria from the results.
- Statement 2: "No country has an absolute advantage in all activities."
- An absolute advantage in all activities means a country uses fewer resources for both goods compared to others.
- None of the countries have the lowest worker hours for producing both olive oil and wine.
- This statement is False under the criteria from the results.
- Statement 3: "One country has a comparative advantage in all activities."
- Comparative advantage reflects the ability to produce a good at a lower opportunity cost than others.
- Given that this kind of comparison particularly focuses on opportunity costs and not absolute hours alone, it requires further distinct analysis beyond given data.
- This statement is False under the criteria from the results.
- Statement 4: "One country has an absolute advantage in all activities."
- An absolute advantage in all activities means a country uses the fewest resources for both goods.
- None of the countries are lowest in both production times.
- This statement is False under the criteria from the results.
After evaluating these statements based on the additional worker hours and absolute advantages:
[tex]\[ \begin{align*} \text{Greece additional hours:} & \ 25 \\ \text{France additional hours:} & \ 5 \\ \text{Italy additional hours:} & \ 10 \\ \end{align*} \][/tex]
The correct analysis dictates against the veracity of all provided statements, considering the traditional constraints applied in economic theory.
So, none of the provided statements fully explain why these countries would benefit from specialization and trade based on provided data and traditional theoretical constraints. However, if we reframe within economic context broader concepts like comparative advantages and complexities, further nuanced statements potentially apply beyond precisely these.
Let's work through the steps:
1. Calculate Additional Worker Hours to Produce Wine Instead of Olive Oil:
- For Greece:
[tex]\[ \text{Additional worker hours} = \text{Worker hours to produce wine} - \text{Worker hours to produce olive oil} = 60 - 35 = 25 \text{ hours} \][/tex]
- For France:
[tex]\[ \text{Additional worker hours} = \text{Worker hours to produce wine} - \text{Worker hours to produce olive oil} = 45 - 40 = 5 \text{ hours} \][/tex]
- For Italy:
[tex]\[ \text{Additional worker hours} = \text{Worker hours to produce wine} - \text{Worker hours to produce olive oil} = 45 - 35 = 10 \text{ hours} \][/tex]
2. Summarize Additional Worker Hours:
[tex]\[ \begin{tabular}{|l|c|c|c|} \hline Country & Additional Worker Hours to Produce Wine Instead of Olive Oil \\ \hline Greece & 25 \\ \hline France & 5 \\ \hline Italy & 10 \\ \hline \end{tabular} \][/tex]
3. Evaluate the Statements:
- Statement 1: "Each country has an absolute advantage in one activity."
- An absolute advantage exists when a country can produce a good using fewer resources than another country.
- Greece has the lowest worker hours for producing olive oil (35 hours).
- France has the lowest worker hours for producing wine (45 hours).
- Italy does not have the lowest worker hours for either product.
- This statement is False under the criteria from the results.
- Statement 2: "No country has an absolute advantage in all activities."
- An absolute advantage in all activities means a country uses fewer resources for both goods compared to others.
- None of the countries have the lowest worker hours for producing both olive oil and wine.
- This statement is False under the criteria from the results.
- Statement 3: "One country has a comparative advantage in all activities."
- Comparative advantage reflects the ability to produce a good at a lower opportunity cost than others.
- Given that this kind of comparison particularly focuses on opportunity costs and not absolute hours alone, it requires further distinct analysis beyond given data.
- This statement is False under the criteria from the results.
- Statement 4: "One country has an absolute advantage in all activities."
- An absolute advantage in all activities means a country uses the fewest resources for both goods.
- None of the countries are lowest in both production times.
- This statement is False under the criteria from the results.
After evaluating these statements based on the additional worker hours and absolute advantages:
[tex]\[ \begin{align*} \text{Greece additional hours:} & \ 25 \\ \text{France additional hours:} & \ 5 \\ \text{Italy additional hours:} & \ 10 \\ \end{align*} \][/tex]
The correct analysis dictates against the veracity of all provided statements, considering the traditional constraints applied in economic theory.
So, none of the provided statements fully explain why these countries would benefit from specialization and trade based on provided data and traditional theoretical constraints. However, if we reframe within economic context broader concepts like comparative advantages and complexities, further nuanced statements potentially apply beyond precisely these.
